Correlation Between Atrium Mortgage and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Maple Leaf at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Atrium Mortgage and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Mortgage Investment and Maple Leaf Foods, you can compare the effects of market volatilities on Atrium Mortgage and Maple Leaf and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Atrium Mortgage with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Maple Leaf.
Diversification Opportunities for Atrium Mortgage and Maple Leaf
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atrium and Maple is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and Atrium Mortgage is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Atrium Mortgage Investment are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Maple Leaf go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Maple Leaf
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.27 times more return on investment than Maple Leaf. However, Atrium Mortgage Investment is 3.71 times less risky than Maple Leaf. It trades about 0.17 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about -0.03 per unit of risk. If you would invest 1,119 in Atrium Mortgage Investment on September 15, 2024 and sell it today you would earn a total of 18.00 from holding Atrium Mortgage Investment or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Maple Leaf Foods
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Maple Leaf Foods |
Atrium Mortgage and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Maple Leaf
The main advantage of trading using opposite Atrium Mortgage and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Maple Leaf can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Atrium Mortgage vs. Timbercreek Financial Corp | Atrium Mortgage vs. iShares Canadian HYBrid | Atrium Mortgage vs. Altagas Cum Red | Atrium Mortgage vs. RBC Discount Bond |
| Maple Leaf vs. Leons Furniture Limited | Maple Leaf vs. Autocanada | Maple Leaf vs. Exco Technologies Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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